D vs NEE: Dividend Comparison
Dividend data as of
Dominion Energy, Inc (D) and Nextera Energy Inc (NEE) are both in the Utilities sector, making them natural rivals for dividend investors. D offers a significantly higher 4.19% yield compared to NEE's 2.49%, a gap of 1.69%. For dividend growth, NEE leads with a 5-year CAGR of 10.2% versus D's 1.5%. NEE holds the edge in dividend safety with a "Moderate" rating. NEE is a Dividend Aristocrat with 30 years of consecutive increases.
Verdict
Yield Analysis
D yields 1.69% more than NEE. In dollar terms, D pays $2.67/share vs NEE's $2.27/share annually.
Dividend Growth
D: Dividend growth is slowing — the 3-year CAGR of 0.0% trails the 5-year rate of 1.5% and the 10-year rate of -0.5%.
NEE: Dividend growth has been steady, with a 3-year CAGR of 10.1% and a 5-year CAGR of 10.2% (10-year: 11.2%).
Dividend Safety
D: The payout ratio of 87% is elevated, which may indicate the dividend could be cut if earnings decline. Earnings cover the dividend 1.1x.
NEE: The payout ratio of 69% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.4x.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in D vs NEE today?
At $66.31 per share, $10,000 buys about 150.8 shares of Dominion Energy, Inc (D). Each share pays $2.67 per year in dividends, so the position starts out generating roughly $403 per year — about $34 a month.
At $93.81 per share, $10,000 buys about 106.6 shares of Nextera Energy Inc (NEE). Each share pays $2.27 per year in dividends, so the position starts out generating roughly $242 per year — about $20 a month.
D is the larger income stream from day one: $161 per year more on the same $10,000 invested.
What could $10,000 of D or NEE income look like in 10 years?
Dominion Energy, Inc (D) has raised its dividend about 1.5% a year over the past five years. If that pace held, the $419 per year that $10,000 generates today at the current 4.19% yield would reach $484 per year by 2036 — a 4.8% yield on the original cost.
Nextera Energy Inc (NEE) has raised its dividend about 10.2% a year over the past five years. If that pace held, the $249 per year that $10,000 generates today at the current 2.49% yield would reach $657 per year by 2036 — a 6.6% yield on the original cost.
On those trailing rates, NEE pays more in 2036: $657 versus $484 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.
When would NEE's dividend growth overtake D's higher yield?
Nextera Energy Inc (NEE) yields less today (2.49% vs 4.19%) but has grown its dividend faster — 10.2% vs 1.5% a year over the past five years. If both trends continued, a $10,000 position in NEE would start out-earning the same position in D around 2033 (roughly 7 years from now), paying about $491 per year at the crossover. Before that point, D pays more each year; after it, the gap compounds in NEE's favor.
Can D and NEE afford their dividends?
Dominion Energy, Inc (D) earns $3.06 per share against $2.67 paid out in dividends — 1.1x coverage (a 87% payout ratio).
Nextera Energy Inc (NEE) earns $3.28 per share against $2.27 paid out in dividends — 1.4x coverage (a 69% payout ratio).
NEE's wider coverage leaves more cushion if earnings dip. As a rule of thumb, coverage below about 1.5x (a payout ratio above ~65%) is where a dividend starts to look stretched — worth watching for D if earnings weaken.
Which fits an early-retirement income portfolio better, D or NEE?
For income you need right now, Dominion Energy, Inc (D) leads: $100,000 invested today pays about $349 a month at the current 4.19% yield, versus $208 a month from Nextera Energy Inc (NEE) at 2.49%.
With a decade or more before the income is needed, NEE's faster dividend growth (10.2% vs 1.5% a year) matters more than the starting yield — raises compound into the larger paycheck over time.
On consistency: NEE has raised its dividend 30 consecutive years.
Many income investors simply hold both — the mix pairs current yield with growth and spreads single-name risk. Whichever way you lean, dividends are never guaranteed; recheck the payout each quarter rather than setting and forgetting.
$10,000 with DRIP: projected annual income
If each holding keeps raising its dividend at its real 5-year rate and every payment is reinvested, a $10,000 position pays $730/yr in D vs $840/yr in NEE by year 10.
Assumes dividends are reinvested at the current yield and grow at each holding's trailing 5-year dividend CAGR. A projection, not a prediction — no price appreciation modeled.
Track D and NEE in your portfolio
See your real income from both — forward projections, yield on cost, and dividend safety signals. Sync your brokerage free for 30 days, or track holdings manually on the free plan.
Frequently Asked Questions
Related Resources
Individual Stock Analysis
Dividend Tools
Track Your Dividends
More Comparisons
This tool is for educational and informational purposes only and does not constitute investment, financial, tax, or legal advice. Consult a licensed professional before making investment decisions.
Past performance does not guarantee future results. All projections are hypothetical estimates based on user-provided inputs and may differ materially from actual outcomes.
By using this tool you agree to our Terms of Service and Privacy Policy.